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Ferguson Shares (FERG) | Dividend, History, & Industry Comparison

Sam Boughedda trader
Updated 30 May 2024

Ferguson plc (NYSE: FERG) (LON: FERG) is a UK-based company founded in 1887 that is dually listed. The company's primary listing is on the New York Stock Exchange after it was shifted from London in May 2022. The company does still have a listing on the London Stock Exchange with the ticker on both exchanges as ‘FERG'.

Ferguson Shares asktraders

Until March 2017, the company traded in the UK market (where the HQ is located) as Wolseley Plc, before aligning under the Ferguson brand. In 2021, Ferguson sold its UK business (Wolseley UK) and shifted its focus to North America. It is also planned that the corporate HQ will relocate to the US in time.

Over the years, Ferguson plc has evolved into a major player in the distribution of plumbing and heating products, piping components, and related materials across various markets. The company operates through two main segments: its USA business, which is its largest division, and its Canada operations.

In the USA, Ferguson serves customers through a network of over 1,500 locations, offering a comprehensive range of products to professional contractors and homeowners alike. In Canada, the company primarily operates under the Wolseley brand and has more than 200 locations. Those that are looking for exposure to Wolseley shares in relation to the Canadian business will need to do so via Ferguson Plc. 

Ferguson PLC Stock Price Chart


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Ferguson Share Price & Dividends

The Ferguson share price has had a tremendous last 12 months or so, climbing more than 58% to well over $200 per share. In October 2023, it fell below the $150 per share mark. More recently, there has been a slight dip in the stock, but some investors may believe this provides a compelling entry point. 

Ferguson's current dividend yield stands at 1.48%.

Ferguson EPS and Revenue Breakdown 2020-2023

FergusonAnnual EPSAnnual Revenue
2020 $4.29$19.94 billion
2021$7.25$22.79 billion
2022$9.59$28.56 billion
2023$9.12$29.73 billion

Industry Comparison


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Ferguson Share Price Forecast

In March, an analyst at HSBC assumed Ferguson with a Buy rating and a $263 price target. The analyst told investors in a client research note that Ferguson's sales growth is attractive, alongside its margin expansion, cash returns to shareholders, and high returns on equity. The HSBC analyst also highlighted that Ferguson shares trade at a discount to US peers, and it sees the gap narrowing.

Also in March, Truist lifted its price target on Ferguson to $230 from $197, keeping a Buy rating on the shares. The investment firm noted that Ferguson shares declined as the company's second-quarter earnings missed estimates. However, FERG management maintained the company's FY24 guidance forecasting improving trends. 

Finally, the Ferguson price target was raised to $217 from $202 at RBC Capital following the company's earnings in March. RBC Capital kept an Outperform rating on the shares, noting that Ferguson maintained its FY24 guidance despite a second-quarter sales miss, which was attributed partly to weather and also to continued residential repair, maintenance, and improvement (RMI) softness. Nevertheless, RBC sees the stock price selloff as offering a better entry point, with a long-term value creation opportunity for the stock “remaining attractive.”

Our View: Ferguson plc is regarded as a robust and dependable business with a strong market presence in North America. The company benefits from diversified revenue streams and a solid operational track record. It is also one to assess further for dividend-focused investors.

Who Should Buy Ferguson Shares

When considering investment in Ferguson plc shares, prospective buyers should carefully assess several key factors tailored to their investment goals and risk tolerance.

Ferguson plc operates within the plumbing and heating distribution sector, which enjoys steady demand driven by essential services and construction projects. Investors seeking exposure to resilient, consumer-focused markets may find Ferguson plc shares appealing.

For income-oriented investors, Ferguson plc's history of dividend payments and potential for future growth in this area could be particularly compelling, providing a source of regular income.

Furthermore, assessing long-term growth prospects is essential. Investors with a strategic focus on industry expansion and market share gains may see Ferguson plc shares as aligned with their investment objectives.

It's important to note that investing in Ferguson plc shares also involves considering risk tolerance. While the plumbing and heating distribution sector is relatively stable, it is not immune to market fluctuations and economic cycles. Investors with a moderate risk tolerance may be comfortable with potential volatility in Ferguson plc's share price as they evaluate its long-term growth potential and dividend-paying history.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.